An Empirical Study Of The Relationship Of Energy Consumption And Economic Growth

Energy is the core of the social productive forces and the source of power, is thematerial basis for the sustainable development of human society. With the developmentof economic globalization and the rapid economic growth of various countries. Whetherdeveloped or developing countries, the demand for energy will continue increasing, therelationship between energy consumption and economic growth has become animportant basis for countries to Formulate sustainable economic development strategy.Economic development can contribute to large-scale develop and utilize of energy,energy is not only the impetus for economic development, but also the obstacles ofeconomic development, with the important non-renewable energy will gradually run out,and the energy consumption will bring ecological and environmental problems, thoseare serious impediment to further economic development.The paper use the theoretical knowledge of economic growth and energyconsumption as a guide, to analyze the current situation of world economic growth andenergy consumption, applies the PVAR model to re-investigate the dynamic relationshipbetween energy consumption and economic growth for developed countries anddeveloping countries during1990~2009period, use the impulse response function andvariance decomposition analysis method, the total energy consumption and fossil energyconsumption ‘s dynamic relationship with economic development.The PVAR model not only to solve the problem of variable endogeneity, but alsoeffectively portrayed the impulse response between the system variables, then usecointegration test and granger causality test to study the relationship between energyconsumption and economic growth in China,and finally put forward the policyrecommendations.Studies have shown that the relationship between energy consumption andeconomic growth of developed countries and developing countries are different.Economic growth in the developed countries play a positive role in promoting theenergy consumption, and the affect is significantly, but in the developing countries onlyhas a little effect on the role of economic growth, the role of both the mutual promotionis unequal. Energy consumption in developing countries have a greater role inpromoting economic growth, much higher than the developed countries, but economicgrowth only have small negative effect on energy consumption, in developing countries economic and energy develop uncoordinated, energy consumption’s further improvedepends on the environment of economic development, with the further development ofeconomic, energy constraints on economic growth will become increasingly large. Theeconomic growth of developed and developing countries have a positive effect to threefossil energy consumption, the positive effect of developed countries is greater than indeveloping countries. The three fossil energy consumption of developed and developingcountries have a positive effect to economic growth except for oil consumption indeveloping countries. There is a long-term Cointegration relationship and one-wayGranger causality from economic growth to energy consumption in China. Whendeveloped and developing countries formulate and implement energy policies, theymust correct understanding their own level of economic development and energyconsumption structure, and relationship between them, formulate energy policy basedon the actual situation according to their own economic, coordinate economic growthand energy consumption.